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COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED JUNE 30, 2018 Important Dates in Palmdale and Antelope Valley History

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COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED JUNE 30, 2018 Important Dates in Palmdale and Antelope Valley History California COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED JUNE 30, 2018 Important dates in Palmdale and Antelope Valley History From left: Captain John C. Frémont, ‘pathfinder of the Rocky Mountains’, passes through the west end of the Antelope Valley; Pronghorn antelope, for which the Valley is named; Capt. Chuck Yeager is the first man to break the sound barrier; Mule team used to construct the L.A. Aqueduct in the western Antelope Valley. 1772 Captain Pedro Fages is the first white quickly becomes one of the biggest alfalfa 1940 Angeles Forest Highway opens. man to cross through the Antelope Valley. producers in California. 1947 Captain Charles Yeager, flying over the 1776 Father Garces comes through the west 1905-13 The Los Angeles-Inyo Aqueduct is Valley from Muroc Air Force Base in a X1 Bell end of the Valley on his way to the Mission of constructed across the Antelope Valley. aircraft, is the first man to break the sound San Gabriel. 1905-20s The years of big jackrabbit drives barrier. 1827 Jedediah Smith and party travels in the Antelope Valley. These drives became 1952 The U.S. Government buys Palmdale through the west end of the Antelope Valley necessary when the rabbits become so thick Airport, renaming it Air Force Plant 42. and Willow Springs. that they destroy many crops. 1953 Lockheed opens a plant in Palmdale, 1844 John C. Frémont and party comes 1910 The Corum family homesteads the and the shift from agriculture to aerospace is through the west end of the Antelope Valley. west side of Rogers Dry Lake. A small town, completed. Muroc (Corum spelled backwards), develops. 1857 Lieutenant Edward Beale and his 1956 Palmdale High School opens on famous camel cavalry travels through the At the present time, this area is known as September 8. Edwards. south end of the Antelope Valley heading for 1962 On August 24, 1962, Palmdale is Fort Tejon. 1912 Antelope Valley High School is incorporated, making it the first city in the founded. 1876 The Southern Pacific Railroad Antelope Valley. Palmdale’s first mayor is completes its line through the Antelope 1914 Pacific Light & Power Company brings Larry Chimbole, and the four councilmen Valley. the first electric power lines into the Antelope elected are Richard Linaker, Marlin Gilbreath, Valley. The company is later sold to the Domenic Massari and Lester Nichols. The Antelope Valley loses 1882-85 present Edison International. 30,000 head of antelope, almost half of 1967 On October 3, William J. “Pete” Knight the population for which it was named. 1915 The first Fair is held in Lancaster. attains the highest speed ever — 4,520 mph Unusually heavy snows in the mountains Palmdale’s first paper, The Palmdale Post, (Mach 6.7) — in the X-15A-2, a fixed-wing and on the valley floor drives the antelope is published. (The first weekly paper in aircraft. toward their normal feeding grounds in the the Antelope Valley is the Lancaster News, 1971 The California State Aqueduct is eastern part of the Valley, but they would not published in 1885.) completed. cross the railroad tracks and many starve to 1921 Mint Canyon Highway is paved and its 1974 Antelope Valley Freeway is completed. death. name changed to Sierra Highway. 1977 Palmdale City Library opens, the first 1886 Palmenthal is founded by Swiss and 1924 Palmdale Lake is reconstructed as building constructed by the City of Palmdale. German families. Harold Reservoir. 1980 Palmdale Cultural Center opens. Palmdale Lake , known as Alpine 1896 1924 Littlerock Dam is completed. 1981 The first space shuttle, Columbia Reservoir, is constructed. 1929 Classes start at Antelope Valley Junior STS-1, lands at Edwards Air Force Base 1899 Palmenthal’s name changes to College. on April 14. It is the world’s first reusable Palmdale. 1933 The U.S. Air Force builds a base spacecraft. 1904 William Barton is the first to use a at Muroc Dry Lake. In 1949, the name is 1987 The Palmdale schoolhouse, the oldest gasoline engine to pump water from his well. changed from Muroc Air Force Base to still-standing building from the original Other farmers quickly adopt this method of Edwards Air Force Base, in honor of Glen Palmenthal settlement, finds a permanent pumping. Its use marks the beginning of the Edwards, a young captain who lost his life home at McAdam Park. It is officially local alfalfa industry, as the Antelope Valley flying an experimental aircraft. dedicated in 1988. COMPREHENSIVE ANNUAL FINANCIAL REPORT CITY OF PALMDALE, CALIFORNIA For the Fiscal Year Ended June 30, 2018 Prepared By Karen Johnston Finance Manager Keith Kang Assistant Finance Manager THIS PAGE INTENTIONALLY LEFT BLANK City of Palmdale Comprehensive Annual Financial Report For the Year Ended June 30, 2018 TABLE OF CONTENTS Page No. I. INTRODUCTORY SECTION Letter of Transmittal i GFOA Certificate of Achievement for Excellence in Financial Reporting xii Organization Chart - City of Palmdale xiii Elected and Administrative Officers xiv Location Map xv II. FINANCIAL SECTION Independent Auditors' Report 1 Managements' Discussion and Analysis 4 Basic Financial Statements Government-Wide Financial Statements 17 Statement of Net Position 18 Statement of Activities 19 Fund Financial Statements Governmental Fund Financial Statements 21 Balance Sheet 22 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position 23 Statement of Revenues, Expenditures and Changes in Fund Balance 24 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities 25 Budgetary Comparison Statements - General and Major Special Revenue Funds 27 Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - General Fund 28 Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - HA-Housing Asset Fund Special Revenue Fund 29 Budget and Actual - HA-Mobile Home Parks Special Revenue Fund 30 Budget and Actual - Street Light Assessment District Special Revenue Fund 31 Fiduciary Fund Financial Statement 33 Statement of Fiduciary Net Position - Fiduciary Funds 34 Statement of Changes in Fiduciary Net Position 35 Notes to the Basic Financial Statements 37 REQUIRED SUPPLEMENTARY INFORMATION 103 Schedule of Changes in Net Pension Liability and Related Ratios-Public Employees Retirement System 104 Schedules of Contributions-Public Employees Retirement System 105 Schedule of Changes in Net OPEB Liability and Related Ratios 106 Schedule of Investment Returns for OPEB 107 City of Palmdale Comprehensive Annual Financial Report For the Year Ended June 30, 2018 TABLE OF CONTENTS Page No. SUPPLEMENTAL SECTION Non-Major Governmental Funds 109 Fund Descriptions 109 Combining Statements - Fund Financial Statements Combining Balance Sheet 112 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 116 Budgetary Comparison Schedules 121 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual: Special Revenue Funds: Air Quality Improvement 122 Community Development Block Grant 123 Drainage 124 Drainage Benefit Assessment Funds 125 Federal Funds 126 Federal Home Program 127 Federal Jobs Program 128 Fire Facilities Impact Special Revenue Fund 129 Gas Tax 130 Housing Authority 131 Landscape Maintenance 132 Local Transportation - Article 3 133 Local Transportation - Article 8 134 Measure R 135 Measure M 136 Miscellaneous Grants/Developer Contributions 137 Park Assessments 138 Park Development 139 Proposition A 140 Proposition C 141 Public Facilities Fund 142 Public Safety 143 South Antelope Valley Emergency Services 144 Sewer Maintenance Assessment District 145 Sewer Upgrade 146 State Grants 147 Traffic Impact 148 Housing Facilities 149 Palmdale Community Foundation 150 Water Park 151 Debt Service Funds: Palmdale Civic Authority 152 Palmdale Financing Authority 153 CFD/Assessment Districts 154 City of Palmdale Comprehensive Annual Financial Report For the Year Ended June 30, 2018 TABLE OF CONTENTS Page No. SUPPLEMENTAL SECTION, CONTINUED Statement of Fiduciary Net position and Assets and Liabilities 155 Statement of Fiduciary Assets and Liabilities Assessment and Community Facilities Districts Agency Fund 156 Combining Statement of Fiduciary Net Position Retiree Health Premium Trust Funds 157 Statement of Changes in Net position and Assets and Liabilities 159 Statement of Changes in Assets and Liabilities Assessment and Community Facilities Districts Agency Fund 160 Statement of Changes in Fiduciary Net Position Retiree Health Premium Trust Funds 161 III. STATISTICAL SECTION Introduction 163 Financial Trends Net Position by Component 165 Changes in Net Position 166 Fund Balances, Governmental Funds 168 Changes in Fund Balances, Governmental Funds 170 Revenue Capacity General Governmental Tax Revenues by Source 172 Assessed Value and Estimated Actual Value of Taxable Property 173 Direct and Overlapping Property Tax Rates 174 Principal Property Tax Payers 175 City Property Tax Levies and Collections 176 Debt Capacity Ratios of Outstanding Debt by Type 177 Ratio of General Bonded Debt Outstanding 178 Direct and Overlapping Governmental Activities Debt 179 Legal Debt Margin Information 180 Project Area 1 & 1A Pledged - Revenue Coverage 181 Project Area 2A Pledged - Revenue Coverage 182 Project Area 2A (20% Set Aside) Pledged Revenue Coverage 183 Demographic and Economic Information Demographic and Economic Statistics 184 Principal Employers - Antelope Valley 185 Operating Information Full-time Equivalent City Government Employees by Function/Program
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